In China's southern city of Guangzhou, the municipal government launched a new car purchasing scheme over the weekend. Under the new rules, registrations of new small passenger vehicles will be limited at 120 thousand over a one-year trial period, and only 10 thousand licenses will be handed out every month.

After Shanghai, Beijing and Guiyang, Guangzhou has become the fourth Chinese city to limit car sales in a bid to reduce traffic jams and improve air quality.

The scheme came into effect on July the first. On June 30, the last couple of hours ahead of the launch, car dealerships were packed with customers who rushed to catch the last chance to purchase a car before the quota began.

Right after he heard the news about the new policy, Mr Chen rushed to the nearest 4S shop at 10 pm on Saturday, and signed the purchase contract for a brand new vehicle.

Car consumer said, "I planned to buy a car a month ago, but now the new quota has just come out, there is no time to waste."

Guangzhou 4S shop manager said, "It’s quite a busy night. Salesmen are working extra hours. The shop is crowded with costumers, and more than thirty cars have been sold tonight."

Hot sales indeed but after tonight’s fever, the coming days will be tough for auto dealers.

Guangzhou auto dealer Lin Yanlong said, "The new policy will impact car sales quite heavily. Compared with a 200-thousand cars registered last year, the new policy will cut auto sales by half. "

Chinese auto stocks fell sharply on Monday after Guangzhou announced to put the cap on annual car sales. And the city’s government said it will release a more detailed car quota plan by the end of July.

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